Kelly Tolling is the highly respected president of the Central Bank of Republic of Oshkosh (CBRO). CBRO has a fixed exchange rate of the Ocean ( or Bloomber ticker OCN) against the Euro, with the parity being fixed at 3.00 = 1.00. Reckless fiscal expansionary policy and negative nominal interest rates pursued by the previous president of CBRO has put the OCN under a speculative attack: hedge funds and investment banks are building massive short positions on the OCN.

Mark the only economic policy measure that WILL NOT HELP Ms.Tolling to avoid a devaluation of the OCN?

a. Reinforce the fiscal and monetart tightening by announcing a large privatization program of valuable mining and oil state enterprises to attract foreign direct investment inflows to Oshkosh b. Convince the Minister of Finance, to reduce the fiscal deficit

c. Adopt positive and high nominal interest rates, to increase the negative carry to squeeze the short sellers of the OCN

d. Scare the speculators by auctioning (selling) all of the remaining international reserves held by CBRO